Working Capital Term Loan

Learn about 2024 interest rates, types available, advantages, and FAQs. Make informed borrowing decisions with comprehensive insights.

RBI Registered
RBI Registered NBFC

Check Your Loan Eligibility in Just 2 minutes!

Attractive interest rates
Attractive interest rates
Unsecured Loan upto 5 Crores
Unsecured Loan upto 5 Crores
Approval within 48 Hours
Approval within 48 Hours

Working Capital Term Loan Eligibility & Documents

Apply with minimal documentation

Eligibility

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Minimum turnover ₹3 crores
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Business vintage 3+ years

Required Documents

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KYC details
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Last 6 months of banking
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Financials for previous 2 fiscal years
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GSTR details for current fiscal year

Our Terms

Interest Rates
Starts from 12% per annum
Processing Fees
Starts from 1% per annum
Penal Interest
Starts from 2% per month + Applicable Tax
EMI & Check Bounce Charges
500 + Applicable Tax

Working Capital Term Loan Benefits

Unsecured credit line

Unsecured credit line

The working capital term loan does not require land, property, bank guarantee or any other business collateral

Paperless

Paperless

Complete the entire application procedure and disbursal process online in a few clicks

Interest as per usage

Interest as per usage

The interest would be charged only for the exact amount and duration of use

Instant disbursement

Instant disbursement

Get disbursement as soon as you submit invoices

Better payment cycles

Better payment cycles

Improve your cash flow with advance supplier payments

How does Working Capital Term Loan Work?

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Enhanced Security Features

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Hassle-free Loan Applications

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Simplified Documentation Process

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Get Disbursals on the Fly

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Ledger on Your Fingertips

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Enhanced Security Features

Working Capital Term Loan

Step-by-step online process to apply for Financing
1
Check Eligibility
Check your loan eligibility
2
Submit Application
Complete a 100% online application form
3
Get Sanctioned
We will evaluate your application and propose a fair sanction
4
Receive Funds
Get disbursements within 2 days of sanction

Why Oxyzo?

Oxyzo provides new-age customized financing
products for your business needs

Collateral-free line of credit

Collateral-free line of credit

Approval within 48 hours

Approval within 48 hours

One-time processing fee only

One-time processing fee only

No new bank Account required

No new bank Account required

No pre-closure charges

No pre-closure charges

No minimum utilization charges

No minimum utilization charges

Best interest rate in the industry

Best interest rate in the industry

Flexible repayment options

Flexible repayment options

100% digitized process

100% digitized process

Know about Working Capital Term Loan

Working capital term loan is a definite upgrade to the overdraft facility, combining the advantages of term loans and overdrafts. A Working Capital Term Loan is a short-term finance that allows a borrower to withdraw funds from Oxyzo up to a predetermined limit,however, the actual withdrawal limit reduces from the sanctioned amount as per drop frequency. Working Capital Term Loan helps SMEs meet their working capital needs and aids in the growth of their business.
Oxyzo, the SME-centric RBI registered NBFC, offers the smart business financing solutions, such as Working Capital Term Loan, to its clients that are completely digitized and hassle-free with no hidden charges.

Frequently Asked Questions

What are the benefits of working capital term loan ?
It is a reducing exposure and a collateral-free financial tool which can be availed by SMEs to meet the short term financial requirements and bridge the working capital gap in their business.
How is the interest rate charged on the working capital term loan facility ?
The interest rate is charged on a pro-rata basis on the amount that is withdrawn, not on the actual limit that is sanctioned.
What is the difference between a bank overdraft and a working capital term loan ?
Unlike the overdraft facility, the actual withdrawal limit reduces from the sanctioned amount in a preset drop frequency when an SME avails a working capital term loan facility.
Does Oxyzo provide unsecured working capital term loan ?
Yes. Oxyzo provides both unsecured and secured working capital term loan facility.
Is there any yearly fee for a working capital term loan ?
No, there is only a one-time processing fee charged.
What criteria must be satisfied to apply for a Working Capital Term Loan ?
Financial institutions typically consider the company's credit history, financial stability, and revenue projections when deciding eligibility.
How long does it typically take for the funds to be transferred when using Working Capital Term Loan?
Once approved, businesses can access the funds quickly and easily, giving them the agility to handle urgent financial needs.
Do Working Capital Term Loan require a down payment ?
A borrower's credit history and the lender's risk assessment decide if a Working Capital Term Loan is unsecured or requires collateral.
Is prepaying a Working Capital Term Loan going to cost me anything ?
Prepayment penalties can vary from one lender to another, so it's best to check your overdraft agreement for details. Before using the facility, businesses are asked to read the terms carefully.

Working Capital Term Loan

Working Capital Term Loan in India 2024

To thrive and grow in today's competitive market, companies must master the art of managing their cash flow. However, traditional lending methods may not always be sufficient to cover unforeseen high or low financial needs. Working Capital Term Loan and other innovative financial options save companies' lives by allowing them to access capital when needed.

Working Capital Term Loan is revolutionary for business credit. In contrast to fixed-term loans, which require regular payments, the Working Capital Term Loan allows companies to access funds as needed, up to a specific limit. Companies can save a ton of time and effort when they don't have to reapply for credit every time they need to cover unexpected costs, fill short cash flow gaps, or seize time-sensitive opportunities.

What is Working Capital Term Loan?

So, what is Working Capital Term Loan? One of the outstanding aspects of business funding that Working Capital Term Loan represents is easiness, as well as flexibility. It can act as a trusted provider of much-needed cash. Working Capital Term Loan, as a restyled form of regular lending, turns out to be the answer to a lot of problems. The traditional approach to borrowing money doesn’t take into account some aspects of your current situation and doesn’t offer you the ability to get money as quickly as you need it.

Unlike just conventional loans which have a fixed amount to be borrowed and have rigid repayment terms, the Working Capital Term Loan is a revolving debt facility. Businesses may quickly obtain a pre-arranged credit limit, and instead of a huge amount, they can take a small amount whenever it is required. It will save the time of repeated approval procedures. It is just like insurance, proffering similar conditions to an individual who has a savings escape, that can be tapped anytime.

The repayment terms can be haggled and therefore, the overdraft can be managed if there are variations in the income of your business. Unlike with traditional loans, businesses are not tied to regular monthly payments and can repay the loan at their own pace, with interest charged only on the outstanding amount. This feature not only gives companies more control over their cash flow but it also prevents them from taking on unnecessary debt when sales are low.

Working Capital Term Loan Interest Rates 2024

Know the current interest rates associated with Working Capital Term Loan so you can make informed borrowing decisions in the business world in 2024. Working Capital Term Loan interest rates in 2024 are determined by a multitude of factors, including macroeconomic trends, monetary policy, assessments of lender risk, and borrower profiles.

  • Market forces and economic conditions have a significant impact on Working Capital Term Loan interest rates. Inflation expectations, economic growth, and current interest rates are just a few of the variables that financial institutions use to inform their pricing strategies.
  • The financial sector's borrowing costs are highly sensitive to the monetary policies put in place by central banks. Central banks have the authority to adjust two significant interest rates—the benchmark lending rate and the discount rate—in response to economic data and policy objectives.
  • Lenders conduct thorough risk assessments to determine the interest rates offered on Working Capital Term Loan. The borrower's creditworthiness, financial stability, industry risk, and collateral (if any) are some of the factors that determine the degree of risk associated with extending credit.
  • Bank competition is another factor that affects the interest rates on Working Capital Term Loan. Lenders may alter their interest rates to attract borrowers or maintain market share, which could cause prices to differ across different financial institutions. A business should compare offers from other lenders for a Working Capital Term Loan to get the best rate.

The charges for a Working Capital Term Loan facility typically range between 9.5% to 13% p.a for Working Capital Term Loan Loans. To succeed in the ever-changing business climate of 2024, companies must be knowledgeable about the factors that influence Working Capital Term Loan interest rates in order to make prudent financial decisions.

Types of Working Capital Term Loan Available

The fundamental concept of a Working Capital Term Loan is the same across financial institutions, although the various varieties arise from variations in terms, features, and eligibility requirements. Working Capital Term Loan types are as follows:

  • Unsecured Working Capital Term Loan

    Unsecured Working Capital Term Loan allow businesses to borrow money without requiring collateral. Credit decisions are primarily based on the borrower's financial stability, creditworthiness, and capacity to repay the loan. Because they allow for convenient access to funds without requiring valuable assets to be put at risk, these overdrafts are ideal for smaller businesses or those with less collateral.

  • Secured Working Capital Term Loan

    Secured Working Capital Term Loan allow borrowers to borrow money against their property, inventory, machinery, or accounts receivable. Securing a loan instead of an unsecured overdraft gives businesses more favourable terms, like lower interest rates and higher credit limits. Securing the overdraft with collateral puts you at risk of having your assets confiscated in the event of a default, so think carefully about the benefits and drawbacks of doing so before you do it.

Why Avail Working Capital Term Loan on Oxyzo?

One of the key reasons for choosing Oxyzo Working Capital Term Loan in place of any other lender is a customer-centric approach, competitive pricing, streamlined processes, and additional services. Businesses might benefit from Oxyzo's Working Capital Term Loan for the following reasons:

  • Oxyzo is successful in that it builds its business around helping customers, connecting their needs with customized solutions, and fostering relationships based on honor, openness, and trust.
  • Oxyzo’s Working Capital Term Loan Facilities offer cost-competitive rates, appealing features, and terms that allow businesses to borrow money quickly and effectively manage their debt.
  • Oxyzo utilizes technology to streamline the application and approval process for Working Capital Term Loan, reducing paperwork and providing fast responses and smooth communication.
  • Oxyzo's dedicated staff of experts is available 24/7 to answer questions and address concerns, providing quick and accurate assistance throughout the borrowing process.
  • Oxyzo continuously innovates to simplify borrowing, providing digital mediums for account management, financial transactions, and value-adding services like financial planning and educational tools.
  • Oxyzo ensures transparency and trust by avoiding hidden fees, providing clear and straightforward policies, and building confidence among users.
  • Oxyzo's reputation for professionalism, security, and compliance makes it a trusted platform for all financial needs, earning the trust and loyalty of its users.
  • Oxyzo's services are convenient, easy, and accessible, allowing businesses to control their finances anytime and anywhere without obstacles.

Customers will never be deceived by Working Capital Term Loan, which comes with Oxyzo's customer-oriented approach. The pricing, procedures, customer support, features, terms & conditions, and availability of our services, as well as its reliability, never disappoint them. Businesses get to enjoy the experience of borrowing through Working Capital Term Loan and making their borrowing terms tailored to their needs when they choose Oxyzo as the preferred partner.

Business Loan EMI Calculator

If you want to be a smart business owner, you need to know how much a loan will cost before you apply. Businesses can benefit from using the Equated Monthly Installment (EMI) Calculator to comprehend their loan repayment responsibilities better.

  • Business Loan EMI Calculator

    An online tool that helps companies figure out their monthly loan repayment amount based on key parameters like loan amount, interest rate, and repayment term.

  • Instantaneous Results

    Provides quick EMI calculation results, eliminating the need for manual calculations or complex spreadsheets, allowing businesses to assess loan scenarios immediately.

  • Comprehensive Insights

    Calculates EMI and provides detailed amortization tables, giving businesses insight into principal, interest, and total amount due, aiding in tracking debt reduction and interest costs.

  • Financial Planning Tool

    Enables businesses to experiment with different repayment scenarios to anticipate financial responsibilities and make educated borrowing decisions.

  • Comparative Analysis

    Allows businesses to compare various loan options side by side easily, aiding in selecting the most favorable terms.

  • Flexibility and Customization

    Flexible and easy-to-use tool that accommodates borrowers with different repayment plans and preferences by allowing adjustments to parameters such as payment frequency and prepayments.

The Business Loan EMI Calculator is a dependable tool that gives companies the information they need to make informed decisions about business financing, allowing them to reach their goals and dreams.

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